In early 2005, the government published a consultation
paper proposing significant amendments and enhancements to the
Island’s Trusts Law. Five main amendments were proposed.
The paper noted some criticism of the existing
anti-forced heirship provisions contained in Article 8A of the
Trusts Law and proposed either amending the existing article
or deleting it entirely and replacing it with a new article.
It is also proposed that Article 8A(2) of the Trusts Law should
apply to all individuals, not just persons domiciled outside
The paper proposed that a new article should be
added to the Trusts Law to confirm that the reservation, or
grant to another person, by a settlor of any powers from a defined
list should not invalidate the trust, and also to allow the
statutory duty of care imposed on trustees to be written out
by the trust instrument.
This consultation laid the groundwork
for the The Trusts (Jersey) Amendment No. 4 Law 2006, which became
law on October 27 that year. The amendments were designed to maintain
and enhance Jersey’s position as one of the world’s leading international
trust jurisdictions by ensuring that its trusts legislation responds
to developments in other jurisdictions and remains internationally
Among the amendments was the introduction of settlor-reserved
powers, which will provide greater statutory certainty regarding
the level of control and influence a settlor may exercise, in
appropriate circumstances, over the ongoing administration of
assets placed into trust. The powers that may be reserved by the
settlor will include the power to appoint and remove trustees,
to amend or revoke the terms of the trust and to appoint or remove
an investment manager or investment adviser
The amendments also permit a trustee to delegate
any of his or her trusts or powers if permitted by the terms of
Other amendments include conflict of law provisions
which will mean that the validity of a trust governed by Jersey
law is not be affected by any rights conferred on anyone under
a foreign law, and a proposal that removes the existing automatic
‘personal guarantor’ provisions for directors of corporate trustees,
thereby making it more attractive to establish private trust companies
Beverley Le Cuirot, Director of Marketing of Jersey
Finance, observed at the time that:
“The changes brought in under the Amendment No.
4 Law are the most significant since the Trusts (Jersey) Law came
into force in 1984. The purpose is to clarify and enhance the
existing Law, and to bring greater certainty to key questions
concerning the validity of Jersey Trusts and the powers that may
be retained by the settlor of a Jersey Trust.
“In addition, the Amendment will remove a number
of provisions in the principal Law which were perceived by some
practitioners as limiting the attractiveness of Jersey as a centre
for very high net worth private family trust business.
In July 2008, Jersey's Economic Development Department
issued on Thursday a consultation paper reviewing the Island's
trusts law with a view to ensurong that they remainsup to date,
reflects recent international developments, and continues to provide
a framework that confirms Jersey’s position as a market
Senator Philip Ozouf, the Minister for Economic
“The Trusts Law has been to a great extent
the engine for the growth of our financial services industry in
the last 20 years. Our Law was the first in the market place and
others have followed our lead. Subsequently, trusts laws in other
places have evolved and in some cases moved ahead of our own product.
This consultation is designed to see how we should develop our
Trusts Law so as to hone our competitiveness.”
The consultation paper covered ten discrete areas
of possible reform with a view to developing Jersey’s trusts
legislation in a way that ensures the maximum overall benefit
for the Island. Responses were invited by 19 September 2008.